Revenue collapses 92% to $650K on working-capital constraints; $4.3M convertible raised

Filed July 15, 2026 · Period ending May 31, 2026 · Compared to 10-Q Jul 15, 2025 · ~2 min read

Key Changes

• high

  Total revenue fell 92% year-over-year to $650,089 (from $8.5M), driven by lower transaction volume in the Telecommunication Products & Services segment due to the company's working-capital position. Management is deploying capital selectively based on liquidity and expected returns.

  MD&A: Revenue decline verify on EDGAR →
• high

  Company issued a $5M senior secured convertible note in May 2026 (net proceeds $4.3M after $700K OID), convertible at $0.94/share, to support working capital and operations. Post-period, the resale registration was declared effective and the remaining $1M subscription amount was released.

  MD&A: Convertible note financing; Subsequent Events verify on EDGAR →
• high

  First-time disclosure that the company operates in China through contractual VIE arrangements rather than direct ownership. VIE agreements may not provide the same control as equity ownership, and enforceability under PRC law is uncertain.

  Risk Factors: VIE structure verify on EDGAR →